Portfolio Performance Techniques - Signal Optimization

Within portfolio settings, you can turn on Signal Optimizer for backtested portfolios. With this feature turned on, it will reduce signal strength, thus reducing volatility of drawdowns. 

Note, if a model has good signals and a good spread, signal optimization will not improve the spread; it can even lower performance.

Once Signal Optimizer is on, you can enable Alpha Weighting, Signal Proportionate Risk, Optimizer Type, and Factor Constraints.

Signal Optimization